Refinance
My Car

Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £10,000 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £255.50 per month, with a total cost of credit of £5,329.80 and a total amount payable of £15,329.80.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.

Car refinancing is a term used when a person with an existing finance agreement takes out a new deal (usually with a new lender) to pay the balance on an existing car finance loan.

When you refinance a car, your current finance deal will be settled with a one-off payment.

Depending on the terms of the deal, this payment could be covered by the new lender or incorporated into your new loan amount. However, this is something that you'll need to check first, as every situation is different.

Why do people usually want to refinance their vehicles? 

It’s all about adapting to your current circumstances. When you take out a Hire Purchase (HP) or a Personal Contract Purchase (PCP) deal, you'll commit to making monthly repayments for a set period. Every deal is different, but it could be anywhere from two to seven years.

However, things can change over time and a loan that was originally right for you may not be suitable anymore. 

Maybe your credit score has improved, and you think you could get a better interest rate. Or perhaps your expenses have increased, and you’d like a lower monthly repayment? You may have taken out joint finance but now need a loan that’s just in your name. Or, have you reached the end of your PCP agreement and need finance to cover the balloon payment?

In all these situations, refinancing your car could help!

Here at Car Finance 247, we work with a wide panel of lenders, some of whom can offer refinance loans. We’ll always look to find you the best deal from our panel, whether you have an existing agreement in place or not. 

Get your quote today to see what sort of deal you could get!

Are you wondering whether a refinance loan is right for you? If your circumstances have changed, refinancing your car could be a great solution. 

Let’s take a look at some of the main reasons people tend to refinance their cars.

A cheaper finance deal

One of the main benefits of refinancing is that you may be able to find a car loan with lower monthly repayments. If you’re struggling to make your repayments or need more disposable income, there’s no need to wait until the end of your agreement. 

Instead, you can swap to a loan with cheaper monthly repayments and a longer repayment period.

Changes to your credit score

Looking for a better deal? 

Credit scores aren’t fixed and yours might have improved since you originally took out your finance agreement. In fact, if you’ve kept up with your repayments, your existing loan could actually have boosted your credit rating! Refinancing could mean you find a loan with a lower rate of interest, lowering your monthly repayments and/or reducing the total amount payable. 

Check your credit score today with our free credit check tool.

Manage your balloon payment

Refinancing is also a preferred option for people coming to the end of a PCP agreement. To keep the car at the end of the contracted term, you’ll need to pay the balloon payment. Taking out a loan to split this one-off cost into manageable monthly repayments could mean you can keep a car you’d otherwise have to hand back to the lender. 

But there are other things you need to keep in mind when refinancing your current car finance. Switching to lower repayments might not be good value in the long term, and you should always take note of the total amount payable on the loan. 

If you’ve chosen lower monthly payments but a longer loan term, then you could end up paying back more money overall.

How does refinancing a PCP balloon payment work?

When you come to the end of a PCP agreement, you have a few options available to you. You can hand the car back, use any positive equity as a deposit for a new agreement, or pay the balloon payment to own the vehicle. The balloon payment is usually a lump sum that represents the current value of your car. It can be a substantial sum - particularly if you've gone for the minimum monthly repayments. And a balloon payment of thousands of pounds can be tough to pay off in one go.

That’s where refinancing comes in. You can take out a new loan to break the one-off cost of a balloon payment down into more manageable monthly repayments.

But don’t forget, taking out a personal loan to cover your balloon payment will mean paying interest, so you’ll likely end up paying more to buy your car than you would’ve done if you’d paid the balloon fee in one go.

When you come to the end of a PCP agreement, you have options. You can hand the car back, use any positive equity as a deposit for a new agreement, or pay the balloon payment to own it. The balloon payment is usually a lump sum that represents the current value of your car. It can be a substantial sum. And a balloon payment of thousands of pounds can be tough to pay off in one go.

That’s where refinancing comes in. You can take out a new loan to break this one-off cost down into more manageable monthly repayments.

But don’t forget, taking out a loan to cover your balloon payment will mean paying interest and so you’ll likely end up paying more to buy your car than you would’ve done if you’d paid the balloon in one go.

Thanks to our panel of lenders, we can look to help people with a variety of different circumstances to refinance. Just because your credit rating could do with some work, it doesn’t mean you have to give up on the idea of getting a new deal.

The same applies if you’re in negative equity. This happens when your car has depreciated (lost value) more quickly than expected and you owe more on the loan than the car is worth. You can still find finance when you’re in negative equity, but your new loan will be based on the amount you have left to pay rather than the car’s new worth. This could limit the number of lenders available to you and may affect the interest rate you’re offered. 

Whether you’re looking to get a better deal, to reduce your monthly repayments or finance a balloon payment, we could help!

It all starts with a quote. If you’re approved in principle, your dedicated account manager will give you a call to talk through your options. No strings attached. They can answer any questions you have about your existing loan and how your refinance deal will work.